Iranian Crude Oil Price Trades at Premium to Brent for First Time Since 2022

BlockBeats News, April 2nd, according to Argus Media data, since the US temporarily eased some of the Iran oil sanctions, Iranian crude oil has been trading at a premium to the global benchmark Brent crude for the first time since May 2022. On March 26th, Iranian main export-grade crude was priced at about $1 per barrel above Brent, while earlier this year under full sanctions, its crude was discounted by about $10 per barrel.

This change indicates that Tehran is benefiting from its control over the Strait of Hormuz. With Brent crude holding around $107 per barrel and global supply tight, buyers are willing to pay a premium for the still accessible oil. By blocking passage for Gulf oil-producing countries while allowing its own cargo through, Iran has created a transportation bottleneck, boosting global oil prices and raising the relative value of its light crude. Tanker tracking data shows vessels associated with Iran still transporting through the strategic waterway and discharging from floating storage facilities. (GoldenTen)